Suppose That the Market Price for Pizzas Increases

question 71

Multiple Choice

Suppose that the market price for pizzas increases.The increase in producer surplus comes from the benefit of the higher prices to

• A)only existing sellers who now receive higher prices on the pizzas they were already selling.
• B)only new sellers who enter the market because of the higher prices.
• C)both existing sellers who now receive higher prices on the pizzas they were already selling and new sellers who enter the market because of the higher prices.
• D)Producer surplus does not increase;it decreases.

---

Definitions:

Alumni Association

An organization of graduates or former students (alumni) aimed at fostering connections and support between members and their alma mater.

Hypothesis Test

A method of statistical inference used to decide whether there is enough evidence to reject a null hypothesis about a population parameter based on sample data.

P-Value

The probability of observing results at least as extreme as those in the data, assuming the null hypothesis is true, used as a method to test hypotheses.

Large-Sample Z

A statistical test used for hypothesis testing or constructing confidence intervals when the sample size is large, typically using the Z-distribution.